HR Audits Part 4: How to Measure the Success of Your Audit

This month, we’ve been covering HR audits. Our previous blogs explored the benefits of HR audits, what’s included in them, how often to schedule them, and how to prepare for them. In our fourth and final installment, we’ll teach you how to measure the success of your audit, so that you can tell if it was carried out properly and if your team took everything they could away from the experience.

Your HR Audit Should Have Included All Key Components Carried Out By the Department
To recap, an HR audit needs to be comprehensive and include all the main functions an HR department is responsible for. This includes everything from remain compliant with all legal guidelines, including hiring, firing, and discrimination laws. You can see an overview of topics in Part 1 of this series.

Measuring the Success of Your HR Audit

  • Compile Your Findings: If you performed your own audit, you should have a checklist of things you’ve reviewed. If you hired a third-party to perform the audit, they should present their findings in an easy-to-follow report. The findings should include items that:
    • are being carried out properly
    • could be improved
    • urgently need to be corrected, such as illegal or unethical practices
  • Compare Current and Prior Audit Results: As you perform your HR audits, you should also be checking any prior deficiencies that were noted and making sure improvements were made on the current audit. If improvements have not been made, it’s important to find out why and make additional corrective steps.
  • Address Deficiencies: Every audit should show room for improvement. Even in a properly functioning, efficient HR department, the team should still be striving to do better. If all processes are being carried out to the letter of the law and employees are being treated both fairly and equitably, then you should focus your efforts on other aspects of HR. Your action plan can include areas like networking with other departments more, improving morale, developing employees more, or another area of the business. These types of things are very difficult for insiders to spot because they’ve been involved in development and they see the improvements that have already been made, so there is a natural tendency to settle on “good enough,” when the mentality should be “What can we be doing better?”
  • Make an Action Plan: Issues, whether areas that could be improved or serious deficiencies, should be analyzed to uncover the root cause. Only then can you begin to find solutions to correct deficiencies and provide results. You may need to consult with a legal professional, department heads, and employees to determine what solutions are best.

By performing HR audits and following through with action plans to correct issues, you’ll reduce legal liabilities and improve the company as a whole. Both can lead to bigger profits and a happier team. If you’d like help with your HR audit or any other HR needs, contact us today.

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